Refer to Figure 24-1. Ceteris paribus, an increase in government spending would be represented by a movement from

For many products, such as fast foods, a variety of prices can be found, but sellers with higher prices can expect to sell their products because

A) arbitrage will quickly eliminate price differences. B) their demand is perfectly inelastic. C) firms differentiate products in many ways, for example, higher-priced fast food restaurants may offer better service. D) consumers are not sensitive to prices.

The official settlement balance

A) is an amount that the IMF requires each member country to pay annually. B) must by definition always be zero. C) equals the current account balance divided by the capital account balance. D) equals the net increase in a country's official reserve assets.